Sir Keir Starmer has justified the decision not to provide compensation to women affected by changes to their retirement age, citing concerns about overburdening taxpayers. The prime minister acknowledged the grievances of the Women Against State Pension Inequality (Waspi) group but deemed their requests financially unsustainable.
This statement came after Work and Pensions Secretary Liz Kendall apologized for a 28-month delay in sending notifications to those born in the 1950s impacted by state pension modifications, reiterating her stance against compensation.
Liz Kendall stated that most women were aware of the increasing state pension age and argued that a state-funded payout would not be fair or economical for taxpayers. The Liberal Democrats condemned the announcement as a “day of shame,” accusing the Labour government of disregarding millions of pension-age women who had been wronged.
In the mid-1990s, the government passed a law to gradually raise the retirement age for women over a 10-year period to achieve parity with men. The coalition government subsequently accelerated the schedule as part of cost-cutting measures.
The Waspi group asserts that millions suffered financial losses due to insufficient notice about the delayed retirement age. A Parliamentary and Health Service Ombudsman investigation earlier this year highlighted potential impacts on thousands of women due to inadequate information about the changes, recommending compensation of £1,000 to £2,950. However, these findings were not legally binding.
Liz Kendall estimated that the proposed compensation could amount to £10.5 billion, emphasizing its lack of fairness and proportionality. Despite acknowledging communication flaws, she disagreed that earlier notifications would have altered the outcome, pointing out that research indicated low recall rates for unsolicited letters.
She pledged to implement corrective measures to prevent similar delays in the future. Sir Keir Starmer, addressing concerns of the Waspi women, highlighted the potential strain on taxpayers if compensation were provided.
The Waspi campaign group strongly criticized the decision, reminding Liz Kendall of her past support for a fair resolution. Angela Madden, the group’s chairwoman, described the denial of compensation as “inexplicable and unjustifiable.” She urged Parliament to address the issue to ensure justice for affected individuals.
Women protest against changes in the state pension
Mentions from Labour MPs critiquing the decision in Parliament followed. Gareth Snell from Stoke-on-Trent Central described the day as sorrowful and urged a reconsideration if economic conditions improve. Brian Leishman of Alloa and Grangemouth expressed shock at the rejection of compensation, labeling it a profound disappointment.